What is Customer Engagement Score (CES)? Customer engagement score (CES), also known as engagement score, is a single quantitative metric that evaluates the engagement of customers and free trial prospects. CES is one of the key metrics for online businesses, particularly companies operating on the software-as-a-service (SaaS) business model. Unlike “offline” businesses, their online counterparts…
What is Tangible Net Worth? Tangible net worth is an estimate of the net worth of an entity that excludes all intangible assets such as trademarks, patents, and intellectual property, etc. The formula for calculating total net worth is as follows: Tangible net worth is used to assess a company’s actual physical net…
What are Restrictive Covenants? Restrictive or negative covenants are a type of non-financial covenants that limit the borrower from engaging in a certain activity or keep it from exceeding a predetermined limit. They are called “negative” debt covenants because they impose restrictions or create certain boundaries for the borrower that it is not supposed to…
What is the Engagement Rate? The engagement rate is a metric used to gauge the level of engagement generated from created content or a brand campaign. In other words, the engagement rate refers to the level of interaction with followers that is generated from content created by a user. Formula for Engagement Rate Where: Total…
What is a Recession? Recession is a term used to signify a slowdown in general economic activity. In macroeconomics, recessions are officially recognized after two consecutive quarters of negative GDP growth rates. In the U.S., they are declared by a committee of experts at the National Bureau of Economic Research (NBER). Recessions are considered a…
What are the Different Theories of Growth? 1. Classical Growth Theory The Classical Growth Theory postulates that a country’s economic growth will decrease with an increasing population and limited resources. Such a postulation is an implication of the belief of classical growth theory economists who think that a temporary increase in real GDP per person…
What is Secular Stagnation? The term “secular stagnation” refers to a state of little or no economic growth – in other words, an environment where the economy is essentially stagnant. “Secular” in this context simply means “long term.” The term was coined by Alvin Hansen in the 1930s, during the Great Depression, and was revived…
What is Net Promoter Score (NPS)? Net promoter score (NPS), also known as net promoter, is a metric that assesses the willingness of customers to recommend a company’s products or services to other people. Essentially, the net promoter score can be viewed as an indicator of customer loyalty and satisfaction. The metric aims to identify…
What is Annual Recurring Revenue (ARR)? Annual Recurring Revenue (ARR) is the total predictable subscription-based revenue a company expects to earn each calendar year. ARR is a key metric for companies that operate on a subscription or contract model, such as SaaS businesses. Unlike one-time payments or short-term deals, ARR reflects ongoing contracts and subscriptions…
What is Monthly Recurring Revenue (MRR)? Monthly recurring revenue (MRR) is a financial metric that shows the revenue that a company expects to receive monthly from customers for providing them with products or services. Essentially, MRR measures the company’s normalized monthly revenue. Revenue normalization is critical for companies that offer various pricing plans for their…
